Pipeline Investment Program (PIPE)

The Pipeline Investment Program (PIPE) is administered by the Commonwealth Financing Authority under the Pennsylvania Department of Community & Economic Development (DCED). Established under legislative acts in 2016 and amended in 2019, PIPE is designed to expand Pennsylvania’s natural gas infrastructure to promote economic development. By providing grants for the construction of natural gas pipelines, the program aims to extend the reach of low-cost energy resources to Pennsylvania’s communities, businesses, and institutions. The Commonwealth acknowledges the importance of leveraging its abundant energy reserves by supporting projects that enable manufacturers, residential areas, and public institutions to access natural gas. The program specifically targets the construction of the final segments of pipeline needed to reach business parks, industrial sites, and large-scale residential areas. Eligible projects include natural gas extensions to business and industrial zones, conversion projects for residential areas with more than 100 parcels, and infrastructure supporting combined heat and power systems. By doing so, the program anticipates economic gains through job creation and the attraction of new enterprises to the region. Projects that fulfill these objectives may receive PIPE grants to cover various construction-related costs, provided they meet outlined eligibility and compliance standards. PIPE is open to a broad range of applicants, including economic development organizations, for-profit businesses, municipalities (such as cities, boroughs, counties), hospitals, and school districts. Applicants must provide a minimum of 50% in matching funds. Eligible expenses include land acquisition, pipeline construction, engineering and design, interconnection tapping, administrative costs (up to 2%), and a contingency allowance (up to 5% of construction costs). Notably, engineering costs are capped at 10% of the grant, and the maximum award available per project is $1.5 million or 50% of total project cost, whichever is less. Additional grants for tapping costs may be available up to $500,000. PIPE grants are subject to various program requirements. Applicants must secure all relevant permits and demonstrate compliance with local planning frameworks. Projects are also subject to prevailing wage requirements as determined by the Pennsylvania Department of Labor & Industry. Compliance obligations include nondiscrimination policies, conflict of interest disclosures, and project record-keeping. Applicants are also required to notify the county and host municipalities where their project is located and must be prepared for audits or documentation requests by the Authority. The application process is conducted through the DCED’s Single Application for Assistance portal (grants.pa.gov), and includes submission of required exhibits such as a project description, cost estimate, funding commitments, a planning agency letter, color-coded maps, and a resolution from the governing board for public sector applicants. Applications are reviewed by the Commonwealth Financing Authority, which assesses proposals based on cost, strategic value, and overall impact. A $100 non-refundable application fee applies and must be paid electronically upon submission. Following approval, applicants receive a grant agreement and commitment letter which must be signed electronically within 45 days. Grant funds are reimbursed upon verified expenses in alignment with the project scope. The program is open and recurring, with expected future cycles based on funding availability and state priorities. For questions, applicants may contact the Site Development Office of the PA DCED at [email protected] or (717) 787-6245. The guidelines are accessible online through dced.pa.gov.